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Fertility and education investment incentive with a pay-as-you-go pension

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  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

Some reports of the related literature describe examinations of whether a child allowance and the subsidy for education investment can raise fertility and education investment, or not. This paper presents consideration of the pension incentive policy as substitutive policies of a child allowance and a subsidy for education investment in a model of quality and quantity of children. Results of the study reported herein demonstrate that pension incentive policy cannot always increase fertility and the education investment, i.e., the growth rate of the human capital stock. If the pension incentive policy can raise fertility and the growth rate of the human capital stock, then the pension incentive policy plays the roles of a child allowance and a subsidy for the education investment. Otherwise, the pension incentive policy should not be provided in place of the child allowance and the subsidy for education investment. Pension incentive policy effects on fertility and the growth rate of the human capital stock depend on the preference parameters of quality and the quality of children.

Suggested Citation

  • Masaya Yasuoka, 2018. "Fertility and education investment incentive with a pay-as-you-go pension," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 37-50, April.
  • Handle: RePEc:spr:eurase:v:8:y:2018:i:1:d:10.1007_s40822-017-0078-9
    DOI: 10.1007/s40822-017-0078-9
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    1. Andy Prasetyo Wati & Sheerad Sahid, 2022. "Factors Influencing Parents’ Awareness of Children’ Education Investment: A Systematic Review," Sustainability, MDPI, vol. 14(14), pages 1-13, July.

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    More about this item

    Keywords

    Fertility; Education investment; Pension; Quality of children; Quantity of children;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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